Legal Considerations for AI Implementation in Business

Artificial intelligence (AI) has emerged as a transformative force across various industries in today’s rapidly evolving technological landscape. As companies strive to maintain competitive advantages and drive innovation, the question arises: should a company implement AI into its operations?

We always favor progress, but it is important to assess the risks and take measures to mitigate them.

Transparency and Accountability

Organizations must inform individuals about how AI systems are processing their data. This includes providing accessible and understandable information about the logic, significance, and potential consequences of automated decision-making

Data Minimization and Purpose Limitation

This means collecting only the data necessary for the specific purpose for which it is being processed and ensuring that it is not used for unrelated purposes without proper legal grounds.

Rights of Data Subjects

The recommendations stress the need to uphold the rights of data subjects under the GDPR. This includes ensuring that individuals can exercise their rights to access, rectify, erase, and restrict the processing of their data. Special attention is given to the right to object to automated decision-making and profiling.

Risk Assessment and Mitigation

Organizations are advised to conduct thorough risk assessments before deploying AI systems. This involves identifying potential risks to data protection and privacy and implementing appropriate measures to mitigate these risks. The use of Data Protection Impact Assessments (DPIAs) is strongly encouraged for high-risk AI applications.

Accountability and Governance

Strong governance frameworks and accountability measures are recommended to ensure compliance with GDPR when using AI. This includes appointing Data Protection Officers (DPOs) where required, maintaining detailed records of processing activities, and ensuring continuous monitoring and auditing of AI systems to detect and address compliance issues.

Prepared by certified data protection expert Brigida Bacienė